Short Hills investor charged with inflating company’s shares

SHORT HILLS -- A New Jersey investor has been arrested in a conspiracy to defraud investors of millions of dollars in a technology startup.

computers (Jarek Joepera, ThinkStock)

Bail was set at $2.5 million for Omar Amanat after his arrest Wednesday in Short Hills, New Jersey. A lawyer for Amanat declined comment after he appeared in Manhattan federal court.

Prosecutors said Amanat and two others conspired to manipulate the market in shares for Kit Digital Inc. from 2008 to 2011. Diego Rodriguez, head of the New York FBI office, said Amanat hid Digital's losses from investors and falsely inflated the company's share price.

He was charged with conspiracy, wire fraud and aiding and abetting investment adviser fraud. Authorities said a co-defendant has pleaded guilty and is cooperating. A lawyer, Rima Jameel, is being sought as a fugitive.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)